Skip to main content
See every side of every news story
Published loading...Updated

Bank of Japan keeps policy rate steady while raising inflation forecast on Iran war worries

The central bank also sharply raised inflation forecasts and cut growth projections as three board members dissented for a hike to 1.0%.

  • The Bank of Japan kept its policy rate steady at 0.75% on Tuesday, though three of its nine board members dissented, citing inflationary pressures from the Middle East conflict.
  • Heightened inflation risks from the Iran war prompted the Bank to sharply revise its core inflation outlook to 2.8% from 1.9% while cutting its 2026 growth forecast to 0.5%.
  • Board members Naoki Tamura, Junko Nakagawa, and Hajime Takata dissented in the 6-3 vote, arguing that Middle East tensions skewed price risks upward and warranted a 1.0% rate hike.
  • Markets reacted as the yen rose and the Nikkei fell following the announcement, while Finance Minister Satsuki Katayama warned the government stands ready to intervene against excessive yen volatility.
  • The Bank signaled a strong chance of rate hikes in coming months, and markets await Governor Kazuo Ueda's press conference for clues on how the Iran war affects its rate-hike strategy.
Insights by Ground AI
Podcasts & Opinions

33 Articles

Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 41% of the sources are Center
41% Center

Factuality Info Icon

To view factuality data please Upgrade to Premium

Ownership

Info Icon

To view ownership data please Upgrade to Vantage

FXStreet broke the news on Monday, April 27, 2026.
Too Big Arrow Icon
Sources are mostly out of (0)

Similar News Topics

News
Feed Dots Icon
For You
Search Icon
Search
Blindspot LogoBlindspotLocal